§ 501. — Fiduciary responsibility of officers of labor organizations.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 29USC501]
TITLE 29--LABOR
CHAPTER 11--LABOR-MANAGEMENT REPORTING AND DISCLOSURE PROCEDURE
SUBCHAPTER VI--SAFEGUARDS FOR LABOR ORGANIZATIONS
Sec. 501. Fiduciary responsibility of officers of labor
organizations
(a) Duties of officers; exculpatory provisions and resolutions void
The officers, agents, shop stewards, and other representatives of a
labor organization occupy positions of trust in relation to such
organization and its members as a group. It is, therefore, the duty of
each such person, taking into account the special problems and functions
of a labor organization, to hold its money and property solely for the
benefit of the organization and its members and to manage, invest, and
expend the same in accordance with its constitution and bylaws and any
resolutions of the governing bodies adopted thereunder, to refrain from
dealing with such organization as an adverse party or in behalf of an
adverse party in any matter connected with his duties and from holding
or acquiring any pecuniary or personal interest which conflicts with the
interests of such organization, and to account to the organization for
any profit received by him in whatever capacity in connection with
transactions conducted by him or under his direction on behalf of the
organization. A general exculpatory provision in the constitution and
bylaws of such a labor organization or a general exculpatory resolution
of a governing body purporting to relieve any such person of liability
for breach of the duties declared by this section shall be void as
against public policy.
(b) Violation of duties; action by member after refusal or failure by
labor organization to commence proceedings; jurisdiction; leave
of court; counsel fees and expenses
When any officer, agent, shop steward, or representative of any
labor organization is alleged to have violated the duties declared in
subsection (a) of this section and the labor organization or its
governing board or officers refuse or fail to sue or recover damages or
secure an accounting or other appropriate relief within a reasonable
time after being requested to do so by any member of the labor
organization, such member may sue such officer, agent, shop steward, or
representative in any district court of the United States or in any
State court of competent jurisdiction to recover damages or secure an
accounting or other appropriate relief for the benefit of the labor
organization. No such proceeding shall be brought except upon leave of
the court obtained upon verified application and for good cause shown,
which application may be made ex parte. The trial judge may allot a
reasonable part of the recovery in any action under this subsection to
pay the fees of counsel prosecuting the suit at the instance of the
member of the labor organization and to compensate such member for any
expenses necessarily paid or incurred by him in connection with the
litigation.
(c) Embezzlement of assets; penalty
Any person who embezzles, steals, or unlawfully and willfully
abstracts or converts to his own use, or the use of another, any of the
moneys, funds, securities, property, or other assets of a labor
organization of which he is an officer, or by which he is employed,
directly or indirectly, shall be fined not more than $10,000 or
imprisoned for not more than five years, or both.
(Pub. L. 86-257, title V, Sec. 501, Sept. 14, 1959, 73 Stat. 535.)
Section Referred to in Other Sections
This section is referred to in title 18 sections 1961, 2516.
